Euro Losing Ground against Other Currencies

The euro has fallen in value against most major currencies in recent months as volatility on the foreign exchange markets has increased in the debt crisis, the European Central Bank said Thursday.

"Between the end of April and early August 2012, the effective exchange rate of the euro depreciated overall amid a renewed increase in volatility," the ECB wrote in its regular monthly bulletin.

"On August 1, the nominal effective exchange rate of the euro, as measured against the currencies of 20 of the euro area's most important trading partners, stood 4.4 percent below its level at the end of April 2012 and 8.2 percent below its average level in 2011," the ECB said.

Between April 30 and August 1, the euro lost 6.9 percent against the U.S. dollar, 9.1 percent against the Japanese yen and 3.1 percent against the pound sterling, it said.

Over the same period, the euro fell 2.2 percent against the Hungarian forint and 1.6 percent against the Polish zloty. By contrast, it rose 4.2 percent against the Romanian leu and by 2.0 percent versus the Czech koruna, the report said.

"Market volatility increased throughout May from the relatively low levels reached at the end of April but declined during June and has stabilized around historical averages since July," the ECB said.